SunLink Health Systems Inc. (SSY)

[KOmani]

From quarterly report:

Since fiscal 2012, our efforts have been more focused on the disposition of hospital facilities than on acquisitions due to the hospitals’ under performance, our financial position, and need to reduce our leverage and interest expense.

The Company expects to continue the disposition of its under-performing hospitals due to the changing nature of rural and exurban hospital markets resulting in, among other things, substantial additional competition, and pressure from Federal and state programs (e.g., Medicare and Medicaid) and private payors to reduce reimbursement for medical services.

Since June 30, 2012, we have sold three hospitals, one nursing home and one home health agency.

As a result of these sales, the Company received aggregate consideration of $24,370 and reduced its debt from $29,021 at June 30, 2012 to $11,444 at March 31, 2016.